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Snapshot after e-RA for Project-II: IFFCO, Paradeep (1,00,000 MT) – EQ

Snapshot after e-RA for Project-II: IFFCO, Paradeep (1,00,000 MT) – EQ

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Summary:

## **SECI Green Ammonia Project-II (IFFCO, Paradeep)**

### 📌 Project Overview

* **Project Name:** Project-II – IFFCO Paradeep
* **Capacity:** **1,00,000 Metric Tonnes (MT)** of Green Ammonia production & supply
* **Location:** Paradeep, Odisha
* **Scheme:** *SIGHT Scheme – Mode-2A, Tranche-I*
* **RfS Reference:** SECI/C\&P/MI/00/0002/2024-25 dated 07.06.2024
* **Auction Date:** 22.08.2025

This project is part of India’s national strategy to accelerate **green hydrogen and green ammonia adoption** by providing long-term supply contracts under SECI’s flagship **SIGHT programme**.

### ⚡ Bidding & Auction Process

* Conducted via **Electronic Reverse Auction (e-RA)** on 22nd August 2025.
* Purpose: To discover the most competitive price for production and long-term supply of green ammonia.
* The **e-RA model** encourages bidders to progressively lower tariffs during the auction window, leading to transparent price discovery.

### 🏭 Buyer & Offtake Commitment

* **Buyer:** *Indian Farmers Fertiliser Cooperative Limited (IFFCO)* – one of India’s largest fertilizer producers.
* IFFCO’s Paradeep unit (in Odisha) is a major ammonia and urea production facility, consuming large quantities of feedstock ammonia.
* Under this project, IFFCO secures a **domestic supply of green ammonia**, reducing dependence on imported ammonia (currently fossil-fuel based).

### 🌱 Strategic Importance

* This is among the **largest single-location green ammonia contracts** under the SIGHT scheme.
* Supports India’s target of **5 MMT of green hydrogen/derivatives by 2030**.
* Contributes to **fertilizer sector decarbonization**, one of the government’s priority use-cases for green hydrogen/ammonia.

### 📊 Expected Outcomes

1. **Green Ammonia Supply Security:** Ensures 1 lakh MT of annual supply to IFFCO Paradeep.
2. **Import Substitution:** Reduces foreign exchange outgo on imported grey ammonia.
3. **Emission Reduction:** Each tonne of green ammonia avoids significant CO₂ emissions compared to fossil-derived ammonia.
4. **Price Discovery:** The e-RA outcome sets benchmarks for future bidding rounds under SIGHT Mode-2A.

### 🔑 Implications

* **For IFFCO:** Long-term assured green ammonia at competitive discovered price.
* **For Developers:** A landmark opportunity to scale green ammonia production projects in India.
* **For Policy:** Demonstrates viability of government-backed reverse auction schemes in hard-to-abate industrial sectors like fertilizers.

👉 In short: The **IFFCO Paradeep Project-II** under SECI’s SIGHT scheme marks a milestone — securing **1 lakh MT/year of green ammonia** through transparent competitive bidding, directly supporting India’s fertilizer industry and decarbonization goals.

For more information please see below link:

Anand Gupta Editor - EQ Int'l Media Network